Flowtech Fluidpower (LSE:FLO) has announced plans for a conditional equity raise designed to generate up to £10 million in gross proceeds, combining a £9 million institutional placing with a separate UK retail offer of up to £1 million. The placing will involve the issue of as many as 16.98 million new shares at 53p each, representing a discount of roughly 11.5% to the previous closing price.
The capital raised is intended primarily to fund the proposed acquisition of the Dutch businesses Q Plus B.V. and Naili Europe B.V., while also reducing group debt and providing additional working capital. A capital reorganisation, including a reduction in the nominal value of the company’s shares, is planned to facilitate the issuance. Directors and senior executives have indicated their intention to participate in the fundraising, and the enlarged share capital is expected to be admitted to AIM on 9 February 2026. Alongside institutional demand, the retail offer will give UK private investors the opportunity to invest on the same terms.
From a trading perspective, Flowtech Fluidpower continues to face pressure on profitability and revenues, with valuation metrics reflecting these challenges. That said, management points to improving sales momentum and a strengthening pipeline, helped by recent strategic activity. While the absence of earnings and dividends remains a headwind, the latest initiatives suggest a more constructive medium-term outlook as the group seeks to rebuild financial resilience and expand its European footprint.
More about Flowtech Fluidpower
Flowtech Fluidpower is an AIM-listed provider of fluid power products and services, supplying hydraulic and pneumatic components along with related solutions. The group serves a broad base of industrial and engineering customers across the UK and mainland Europe, pursuing growth through distribution-led expansion and technical support for OEM and maintenance markets.
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